The domestic market for coffee in the country of Tavolara is…
The domestic market for coffee in the country of Tavolara is described by: Demand curve: QD = 20 – P Supply curve: QS = P The world price for coffee is $8 per box of coffee. If Tavolara imposes a $1 tariff per box of coffee, how much deadweight loss will this tariff cause in the domestic market? Answer: Deadweight loss = What is the consumer surplus and tariff revenue after the tariff is put in place? Answer: Consumer surplus = Answer: Tariff revenue =